One thing I’ve noticed about futures trading is that a liquidation price is not always the price where your position actually closes.
Mark price can trigger liquidation, but the final exit depends on available liquidity and market conditions. When the order book is thin, execution can be worse than expected.
That’s why I believe understanding liquidity is just as important as knowing your liquidation level. A number on the screen doesn’t tell the whole story.
Mark price can trigger liquidation, but the final exit depends on available liquidity and market conditions. When the order book is thin, execution can be worse than expected.
That’s why I believe understanding liquidity is just as important as knowing your liquidation level. A number on the screen doesn’t tell the whole story.
